PERSONAL AUTO MANUAL

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Oklahoma (Ed. 006) New Business 05-01-15

North Star Mutual Ins. Co. Renewals 05-01-15

PERSONAL AUTO MANUAL

ITEM

RULE #

PA PAGE

Antique Autos ... 18 ... 24-25

Application Procedure ... 33 ... 35

Artisan Rating Factor ... ... 45

Auto Loan/Lease Coverage ... 25 ... 33

Campers (See Pickup Camper Bodies and Toppers) ... 23 ... 29-30 Cancellation/Nonrenewal ... 37 ... 37

Changes ... 30 ... 34

Classic Autos ... 19 ... 26

Classification Definitions ... 3 ... 3-5 Age, Sex and Marital Status Classifications (Of Operator) ... 3 ... 4-5 Use Classifications ... 3 ... 3 Classification Procedure ... 4 ... 5-6 Classification Changes ... 4 ... 6 Multi-Car Risks ... 4 ... 6 Primary Classification ... 4 ... 5 Secondary Classification ... 4 ... 5-6 Single Car Risks ... 4 ... 6

Coverages - Limits and Deductibles ... 9 ... 14-16 Base Rates ... 9 ... 14

Deductible Insurance ... 9 ... 16

Medical Payments ... 9 ... 14

Physical Damage for Vehicles Over 10 Years Old ... 9 ... 16

Split Liability Limits ... 9 ... 14

Uninsured Motorists Coverage ... 9 ... 15

Customizing Equipment Coverage ... 21 ... 27

Definitions... 2 ... 1-2 Artisan Vehicles ... 2 ... 2

Farm Family Corporations and Partnerships ... 2 ... 2

Farm Truck ... 2 ... 2

Federal Government Employees ... 2 ... 2

Pickups and Vans ... 2 ... 2

Private Passenger Auto ... 2 ... 1

Discounts... 5 ... 7-9 Anti-Theft ... 5 ... 7

Companion Policy ... 5 ... 7

Accident Prevention Course ... 5 ... 8

Good Student ... 5 ... 8-9 Household ... 5 ... 7 Mature Driver ... 5 ... 9 Multi-Car ... 5 ... 7 Passive Restraint ... 5 ... 8 Electric Autos ... 20 ... 26

Eligibility Personal Auto Policy ... 1 ... 1

Eligibility Vehicles and Drivers ... 39 ... 38

Employers Non-ownership Liability ... 15 ... 23

Excess Electronic Equipment Cov. & Tapes, Records, Disks & Other Media Cov. 12 ... 20

Extended Non-Owned Coverage (Borrowed Or Rented Autos) ... 14 ... 22

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North Star Mutual Ins. Co. Renewals 05-01-15

PERSONAL AUTO MANUAL

TABLE OF CONTENTS CONTINUED

ITEM

RULE #

PA PAGE

Farm Truck Rating Factor Table ... ... 45

Installment Premium Payment Option ... 35 ... 36

Insurance Score ... 43 ... 41-42 Loan/Lease Coverage ... 25 ... 33

Motor Homes ... 22 ... 28

Named Non-Owner Coverage... 13 ... 21

Nonrenewal (See Cancellation/Nonrenewal) ... 37 ... 37

Optional Limits Transportation Expenses Coverage (Rental Expense Cov.) ... 16 ... 23

Pickup Camper Bodies and Toppers ... 23 ... 29-30 Policy Period and Continuation ... 28 ... 34

Premium Calculation Steps ... 8 ... 13

Premium Determination ... 7 ... 12

Premium Determination - Farm Trucks ... ... 45

Premium Procedures ... 36 ... 36

Bad Check Charge ... 36 ... 36

Down Payment Requirements ... 36 ... 36

Endorsements ... 36 ... 36 New Business ... 36 ... 36 Non-Payment ... 36 ... 36 Renewals ... 36 ... 36 Pro-Rata Changes ... 31 ... 34 Questionable Applicants ... 34 ... 36 Rate Change ... 29 ... 34

Rates For Symbols Not Displayed ... 11 ... 19

Rating Factors and Statistical Codes Primary Classifications ... ... 42-44 Secondary Classifications ... ... 44

Rating Territories and Factors... 32 ... 35

Rating Tier Selection And Factors ... 42 ... 40

Auto Discount Selection Guide ... 42 ... 40

Roadside Assistance ... 17 ... 23-24 Safe Driver Insurance Plan (SDIP) ... 6 ... 9-12 Administration of SDIP... 6 ... 12

Combination Accidents and Convictions ... 6 ... 11

Definitions ... 6 ... 9-11 Driving Record Sub-Classification ... 6 ... 11

Multi-Car Risk ... 6 ... 11

Schedule of Endorsements ... ... 46

Suspension... 38 ... 37

Symbol Determination for Pickups, Vans, Farm Trucks and Unlisted Vehicles ... 10 ... 17-18 Towing and Labor Costs – See Roadside Assistance Trailers Designed for Use with Private Passenger Autos ... 24 ... 30-32 Transportation Expenses Coverage – Optional Limits (Rental Expense Cov.) ... 16 ... 23

Trusts as Additional Insureds ... 26 ... 33

Undesirable Vehicles ... 41 ... 39

Whole Dollar Premium ... 27 ... 34

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North Star Mutual Ins. Co. PA - 1 Renewals 05-01-15

PERSONAL AUTO MANUAL

RULE 1 - PERSONAL AUTO POLICY - ELIGIBILITY

A.

A Personal Auto Policy will be used to provide coverage to private passenger autos, and motor vehicles considered as private passenger autos in RULE 2 if:

1. They are written on a specified auto basis; and

2. They are owned by an individual or by spouses who are residents in the same household. Both spouses who are residents in the same household may be listed as named insureds on the declarations page.

B.

A Personal Auto Policy will be used to provide coverage to private passenger autos, pickups, and vans that are owned jointly by two or more:

1. Resident relatives other than spouses; or 2. Resident individuals; or

3. Non-resident relatives, including non-resident spouses; if: a. They are written on a specified auto basis; and

b. The Joint Ownership Coverage endorsement is attached.

C.

A Personal Auto Policy will be used to provide coverage to motor homes if: 1. They are written on a specified vehicle basis;

2. They are owned by an individual, by spouses who are residents of the same household, or by two or more resident relatives; and

3. The Miscellaneous Type Vehicle Endorsement is attached.

D.

Private Passenger Autos owned by corporations, co-partnerships, or unincorporated associations are not eligible.

Exception:

Private Passenger Autos owned by farm family co-partnerships or farm family corporations principally garaged on a farm or ranch shall be classified and rated in accordance with RULES 3 and 4, provided that vehicle is not used in an occupation other than farming or ranching.

E.

A Personal Auto Policy will be used to provide coverage to farm trucks provided they meet the requirements in RULE 1, Paragraph A. and are not used to haul for others or for hire.

F.

NAMED NON-OWNER PP 03 22

A Personal Auto Policy may be used to provide coverage to a named individual who does not own an auto. The named non-owner coverage endorsement must be attached. This coverage may be used for existing accounts only. Not to be used on new business.

RULE 2 - DEFINITIONS

A.

1. PRIVATE PASSENGER AUTO

A private passenger auto is a four wheel motor vehicle, other than a truck type, owned or leased under contract for a continuous period of at least six months, and:

a. Not used as a public or livery conveyance for passengers; b. Not rented to others; or

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RULE 2 - DEFINITIONS (Continued)

2. PICKUPS AND VANS

A pickup or van shall be considered a private passenger auto, if it:

a. Is owned by an individual or by spouses who are residents of the same household; b. Has a Gross Vehicle Weight Rating of 10,000 lbs. or less; and

c. Is not used for the delivery or transportation of goods or materials unless such use is:

1) Incidental to the insured’s business of installing, maintaining or repairing furnishings or equipment as an Artisan (see definition of Artisan Vehicle below); or

2) For farming or ranching.

3. FEDERAL GOVERNMENT EMPLOYEES PP 03 01

A pickup or van used in the business of the United States Government, by an employee of the Government, shall be considered a private passenger auto only if:

a. It meets the conditions in 2.a., 2.b. and 2.c. above; and

b. Coverage is limited in accordance with the federal employees using autos in government business endorsement.

4. FARM FAMILY CORPORATIONS AND PARTNERSHIPS NSG-PA02

A motor vehicle owned by a farm family co-partnership or farm family corporation shall be considered a private passenger auto owned by two or more relatives who are residents of the same household if: a. It is principally garaged on a farm or ranch; and

b. It otherwise meets the definitions in 1. and 2. above. 5. FARM TRUCK NSG-PA04

A farm truck is a truck type motor vehicle, including semi-tractors which is used for farming purposes, but which is not used for pleasure, commuting to work or hauling for hire.

6. ARTISAN VEHICLE

An artisan vehicle is a pickup, van or SUV with a Gross Vehicle Weight Rating of 10,000 lbs. or less. The use must not be for the delivery or transportation of goods or materials unless such use is incidental to the insureds business of installing, maintaining or repairing furnishings or equipment. (i.e. carpenter, electrician, plumber, plasterer, or painter)

B.

AUTO as used in this manual refers to a private passenger auto or a vehicle considered as a private passenger auto.

C.

LIABILITY as used in this manual refers only to Bodily Injury and Property Damage Coverages.

D.

OTHER THAN COLLISION (OTC) COVERAGE as used in this manual refers to other than collision damage to a motor vehicle.

E.

OWNED as used in this manual includes an auto leased under contract for a continuous period of at least six months. If an auto lease contract requires the lessee to provide primary insurance for the lessor, attach the additional insured-lessor endorsement.

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RULE 3 - CLASSIFICATION DEFINITIONS

A. USE CLASSIFICATIONS

1. BUSINESS USE means that the use of the auto is required by or customarily involved in the duties of the applicant or any other person customarily operating the auto, in an occupation, profession or business, other than going to or from the principal place of occupation, profession or business.

2. FARM USE means the auto is principally garaged on a farm or ranch, and:

a. It is not customarily used in going to or from work other than farming or ranching; b. It is not customarily used in going to or from school;

c. It is not customarily used in any occupation other than farming or ranching; and

d. A substantial portion of the insured’s income is derived from active farming or ranching. 3. PLEASURE USE means:

a. No BUSINESS USE; and

b. Personal use, including driving to or from work or school: 1) Less than 3 road miles one way; and

2) 3 or more, but less than 15, road miles one way for not more than 2 days per week or not more than 2 weeks in any 5 week period.

4. WORK LESS THAN 15 MILES means: a. No BUSINESS USE; and

b. Personal use, including driving to or from work or school:

1) 3 or more, but less than 15, road miles one way if such usage is more than 2 days per week or more than 2 weeks per 5 week period; or

2) 15 or more, but less than 30, road miles one way, for not more than 2 days per week or not more than 2 weeks in any 5 week period.

5. WORK 15 OR MORE BUT LESS THAN 30 MILES means: a. No BUSINESS USE; and

b. Personal use, including driving to or from work or school:

1) 15 or more, but less than 30, road miles one way more than 2 days per week or more than 2 weeks in any 5 week period; or

2) 30 or more road miles one way for not more than 2 days per week or not more than 2 weeks in any 5 week period.

6. WORK 30 OR MORE MILES means: personal use including driving to or from work or school 30 or more road miles one way more than 2 days per week or more than 2 weeks in any 5 week period.

7. An auto driven part way to or from work or school, such as to a railroad or bus depot, whether or not the auto is parked at the depot during the day, shall be considered as driving to or from work or school. 8. An auto used by a member of the clergy shall not be considered as used for business or driven to and

from work. Rate as pleasure use.

LIABILITY COVERAGE ONLY

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RULE 3 - CLASSIFICATION DEFINITIONS (Continued)

B. AGE, SEX AND MARITAL STATUS CLASSIFICATIONS

1. YOUTHFUL OPERATOR means an applicant or any other operator resident in the same household as the applicant, who customarily operates the auto, and is one of the following:

a. YOUTHFUL UNMARRIED FEMALE OPERATOR - unmarried female age 24 and younger; b. YOUTHFUL MARRIED MALE OPERATOR - married male age 24 and younger;

c. YOUTHFUL UNMARRIED MALE OPERATOR - unmarried male age 24 and younger who is not an owner or principal operator; or

d. YOUTHFUL UNMARRIED MALE OWNER OR PRINCIPAL OPERATOR - unmarried male age 24 and younger who is an owner or principal operator.

2. OPERATORS AGE 50 AND OVER

a. The Operator Age 50-64 Class shall apply if the operator of the auto is age 50 to 64. b. The Operator Age 65-74 Class shall apply if the operator of the auto is age 65 to 74. c. The Operator Age 79 or Over Class shall apply if the operator of the auto is age 79 or over. d. If all operators in the household are age 50 or over, the above classes shall apply to all autos. e. If there are operators in the household under age 50:

1) Any youthful operator class shall apply in accordance with the youthful operator rules.

2) The age of the operator shall be disregarded for the purposes of rating automobiles in excess of the number of operators age 50 and over (unless a youthful operator classification is applicable). 3) Autos principally operated by an adult under age 50 shall be rated at the “All Other” or “Only

Operator Female Age 30-49” Classification (unless a youthful operator classification is applicable).

3. AGE means the age attained on the last birthday.

4. MARRIED means a married person living with his or her spouse and includes a person widowed, divorced or legally separated only if such person has custody of one or more resident children.

5. PRINCIPAL OPERATOR means:

a. An individual whose operation of the auto constitutes 50% or more of its time or mileage use is considered a principal operator.

b. Each individual who does not qualify as a principal operator as defined in a. above but whose aggregate operation of all private passenger automobiles in the household equals 50% or more of the total time or mileage use of one insured automobile is considered a principal operator for one such automobile.

c. If two or more unmarried males age 24 and younger do not individually qualify as principal operator but their combined use of the automobile constitutes 50% or more of its total time or mileage use, the automobile is considered as having a principal operator of the same age as the unmarried male age 24 and younger who is the most frequent operator. The same interpretation applies to situations involving two or more unmarried females age 24 and younger.

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RULE 3 - CLASSIFICATION DEFINITIONS (Continued)

6. RESIDENT means anyone residing in the same household. Exceptions:

a. A person in active military service with the armed forces of the United States of America is not considered a resident in the applicant’s household unless this person customarily operates the auto. This applies to military assignment after basic training.

b. If a YOUTHFUL UNMARRIED FEMALE OPERATOR is a student residing at an educational institution over 100 road miles from the address of the named insured shown on the declarations and does not have a car with her, she is rated under the “All Other” class on the highest rated vehicle. This does not apply to OTC only vehicles.

c. If a YOUTHFUL UNMARRIED MALE OPERATOR is a student residing at an educational institution over 100 road miles from the address of the named insured shown on the declarations and does not have a car with him, he is rated as if he is MARRIED. This does not apply to OTC only vehicles. Note: For the purpose of Exception c., if the rating factor for a married youthful operator is greater

than the factor for an unmarried youthful operator, use the lower factor and corresponding statistical code.

RULE 4 - CLASSIFICATION PROCEDURE

Refer to RULE 3 - CLASSIFICATION DEFINITIONS for definitions of terms used in this rule.

A.

Autos owned by an individual, or owned jointly by two or more relatives or resident individuals are classified as follows:

1. PRIMARY CLASSIFICATION

a. Classify the auto according to the age, sex and marital status of the operators, the use of the auto and the eligibility of youthful operators Good Student classes, and

b. Determine the applicable factor from the Primary Rating Factor tables.

Note: The exposure increases considerably when a youthful driver is first learning to drive. It is therefore required that when a youthful driver can legally drive unsupervised, he or she be added to the policy as a driver and the appropriate youthful driver classification be applied on the next renewal date.

2. SECONDARY CLASSIFICATION a. Determine if the auto is:

1) A single car; or 2) Part of a multi-car risk.

b. Refer to the Safe Driver Insurance Plan to classify operators according to the provisions of the Plan. c. Refer to the Secondary Rating Factor table to determine the appropriate factor to be added to, or

subtracted from the Primary Rating Factor to determine the “Total Rating Factor”. 3. The applicable “Youthful Operator” Classifications shall be applied as follows:

Determine the number of Youthful Operators and the Primary Rating Factor for each at the Pleasure Use Classification.

a. If there are more cars than Youthful Operators, or an equal number of cars and Youthful Operators, assign operators to cars as follows:

1) Each principal Youthful Operator to the car principally operated;

2) Remaining Youthful Operators to remaining cars in the order of highest rated Youthful Operator to the car with the highest Total Base Premium without regard to the cars operated; and

3) Any remaining cars at the appropriate No Youthful Operator classification.

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RULE 4 - CLASSIFICATION PROCEDURE (Continued)

b. If there are more Youthful Operators than cars, assign Youthful Operators to cars as follows:

1) Select the Youthful Operators with the highest Pleasure Use rating factors equal to the number of cars.

2) Of those selected in paragraph 1), assign any principal operator to the cars they principally operate.

3) Of those remaining after principal operator assignment in paragraph 2), assign operators to cars in the order of highest rated Youthful Operator to the car with the highest Total Base Premium. After assigning Youthful Operators to cars on the basis of the primary Pleasure Use factors, each factor must be adjusted for the actual car use before determining and applying the Secondary Rating Factor. c. If the TOTAL BASE PREMIUM is the same for each car, the classification for any youthful operator

who is not the principal operator of any of the autos is applied to the auto with the lowest rated use classification.

TOTAL BASE PREMIUM is the sum of the base premiums for Bodily Injury and Property Damage Liability, Medical Payments, Other Than Collision (OTC) and Collision coverages that apply to the auto.

4. SINGLE CAR RISKS AND MULTI-CAR RISKS a. Single Car Risks

If the number of youthful operators exceeds the number of autos, the Youthful Operator Classifications with the highest Primary Rating Factors apply. In determining such classifications, any Good Student qualification shall apply.

b. Multi-Car Risks

The applicable Multi-Car Rating Factor applies if more than one private passenger auto is owned by an individual or owned jointly by two or more resident relatives, and two or more such autos are insured in North Star for any of the following coverages:

Bodily Injury Liability, Property Damage Liability, Medical Payments, Other Than Collision (OTC) or Collision insurance. The vehicle operators must be resident relatives of the insured's household. For purposes of this rule, a relative shall include the following persons:

Spouse;

Child, adopted child, stepchild or grandchild; Parent, stepparent or grandparent;

Brother or stepbrother; or Sister or stepsister.

Motor Homes, Farm Trucks, or trailers are not eligible for the Multi-Car discount and do not qualify other vehicles for the Multi-Car discount.

B. CLASSIFICATION CHANGES

Compute premium adjustments on a pro-rata basis when changes in Primary and Secondary Rating Classifications are made. This includes the addition or deletion of an operator during the policy term.

Exceptions:

1. A policy shall not be changed mid-term because of the attained age of an operator of the auto. 2. A policy shall not be changed mid-term to affect a change in the Driving Record Sub-Classification. 3. A policy shall not be changed mid-term solely due to a change in symbol assignment based on a review

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RULE 5 - DISCOUNTS

A. COMPANION POLICY DISCOUNT

1. A 20% Companion Policy Discount (for Select, Preferred and Five Star rated vehicles) applies on the auto premium for those insureds who have their Homeowners, Mobile Homeowners or Farmowners Policy with North Star Mutual Insurance Company. Tenants forms must carry a minimum amount of $30,000 on Coverage C. Apply the discount to each coverage requested on the application. There may be some variance due to rounding procedures. The vehicle operators must be resident relatives of the insured's household or students enrolled in school full time, as defined by the school. Dwelling Fire and Farm Fire policies do not apply.

2. The discount shall continue for each subsequent auto renewal, provided the individual continues to maintain the qualifying policy with North Star Mutual Insurance Company.

3. On existing policies, the discount will only be applied at renewal.

4. Qualification for the Companion Policy Discount assumes that all personal autos of the insured are being written with North Star Mutual.

5. Show the qualifying policy number in the REMARKS section of the application.

B. MULTI-CAR DISCOUNT

The applicable Multi-Car Rating Factor applies if more than one eligible private passenger auto is owned and operated by an individual or by two or more resident relatives and the vehicles are insured on the same policy. If the Multi-Car Discount applies, use the appropriate Multi-car rating factor shown in the Secondary Classifications table on page PA-42 of the Rating Factors and Statistical Codes.

C. HOUSEHOLD DISCOUNT

[RJ1]

The Household Discount applies when there is only one eligible private passenger rated auto insured on the policy and a resident relative insures one or more eligible private passenger rated auto(s) on a separate policy in our company. This discount provides a - .19 rating factor which is applied to the primary rating factor. The discount may also apply if the insured only has one vehicle on the policy and is supplied a company car or has a separate commercial auto policy. It may also apply to non-traditional couples both insuring their autos with North Star on separate policies. The Household Discount and the Multi-Car Discount may not apply simultaneously on the same policy.

D. ANTI-THEFT DISCOUNT

These discounts apply to Other Than Collision (OTC) Coverage only. To qualify, the vehicle must be equipped with:

1. A hood lock which can be released only from inside the vehicle; and 2. A device meeting the criteria of either paragraph a. or b. below:

a. Alarm ONLY (Coverage Code 1) and Active Disabling Devices (Coverage Code 2)

A 5% discount on Other Than Collision (OTC) Coverage will be provided on vehicles equipped with 1) alarm only devices which sound an audible alarm that can be heard at a distance of at least 300 feet for a minimum of three minutes, or 2) active disabling devices which disable the vehicle by making the fuel, ignition or starting system inoperative. A disabling device is categorized as active if a separate manual step IS required to engage the device.

b. Passive Disabling Device (Coverage Code 3)

A 15% discount on Other Than Collision (OTC) Coverage will be provided on vehicles equipped with passive disabling devices which disable the vehicle by making the fuel, ignition or starting system inoperative. A disabling device is categorized as passive if a separate manual step is NOT required to engage the device.

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RULE 5 - DISCOUNTS (Continued)

E. PASSIVE RESTRAINT DISCOUNT

The following discounts apply to Medical Payments Coverage ONLY. To qualify, the private passenger auto must be equipped with a factory installed automatic occupant restraint conforming to the federal crash protection requirements, and meeting the criteria of either paragraph 1. or 2. below:

1. 20% discount will be provided when the restraint is installed in the driver-side-only position.

2. 30% discount will be provided when the restraints are installed in both front outboard seat positions.

F. ACCIDENT PREVENTION COURSE DISCOUNT (Defensive Driver)

1. A 5% Motor Vehicle Accident Prevention Course Discount shall be applied to the premiums for Bodily Injury Liability, Property Damage Liability, Medical Payments and Collision coverages provided:

a. The auto is classified and rated as a private passenger auto; and

b. The principal operator of the auto has a completion certificate, dated within the most recent 36 months, certifying successful completion of an accident prevention course approved by North Star (ATTACH PHOTOCOPY OF CERTIFICATE to application or request for discount).

The course must not be a self-instructed course and must not be required by a court order resulting from a motor vehicle violation or an alcohol or drug-related offense. An approved course shall provide for a minimum of six hours of actual classroom or field driving instruction.

2. The discount applies as follows:

a. To new and renewal policies with inception dates within the 36-month period following the course completion date.

b. Only to the motor vehicle principally operated by the insured with the course completion certificate. c. Only once to each such motor vehicle regardless of the number of operators with course completion

certificates.

3. The discount shall not apply if the operator who completed the course:

a. Is eligible for a Driver Training Classification according to the Personal Auto Manual; or

b. Has been assigned one or more points under the Safe Driver Insurance Plan as a result of accidents or convictions.

G. GOOD STUDENT DISCOUNT

The applicable Good Student Classification in the Primary Classification Rating Table applies provided: 1. The owner or operator is a full time high school, college or university student. A full time student means a

student enrolled in school full time, as defined by the school.

2. A certified statement from a school official is presented to the Company on each annual anniversary date of the policy indicating that the student has met one of the following requirements during the immediately preceding school semester:

a. Is in the upper 20% of his/her class scholastically;

b. Maintains a “B” average, or its equivalent. If the letter grading system cannot be averaged, then no grade can be below “B”;

c. When in a school maintaining a numerical grade, must have at least a 3 in a 4, 3, 2, 1 point system or its equivalent; or

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RULE 5 - DISCOUNTS (Continued)

3. The Good Student discount will stay in effect through age 24 even if the owner or operator is no longer a full-time student if the owner/operator graduated from Vocational School, College, or University and was eligible during the last semester attended.

Current Business - The Good Student Discount will be continued only if a new certificate is sent to the Home Office annually. The Home Office will send a notice to the agent approximately 90 days prior to the renewal date, stating that a new Good Student Certificate is required. It is then the agent’s responsibility to forward the new certificate to the Home Office prior to the renewal notice being issued. This means that we must receive it no later than 45 days prior to the renewal date. Midterm class changes to apply the Good Student Discount will be processed using the current date. Back dating the effective date is not permitted.

H. MATURE DRIVER DISCOUNT

Any driver in the 50-74 age group receives the best rating factors available. Generally, the discount is 15% as compared to younger age groups.

RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP)

A. DEFINITIONS

1. DRIVING RECORD POINTS a. Convictions

Points shall be assigned for convictions during the experience period for motor vehicle violations of the applicant or any other current resident operator as follows:

1) One-half point is assigned for conviction of any moving traffic violation by any driver under the age of 30 which is not assigned under one of the following paragraphs (This is limited to the first two convictions during the experience period).

2) One point shall be assigned for the conviction of any moving traffic violation resulting in: a) Suspension or revocation of an operator's license;

b) The filing of evidence of financial responsibility under any Financial Responsibility Law required as of the effective date of the policy; or

c) The third and successive convictions not qualifying under paragraphs one and four of this section by a driver under age 30.

3) Two points shall be assigned for:

a) the accumulation of points under a State Point System or a series of convictions requiring the filing of evidence of Financial Responsibility under any Financial Responsibility Law as of the effective date of the policy; or

b) Conviction of reckless driving.

4) Three points are assigned for conviction of:

a) Driving while intoxicated or under the influence of drugs; b) Failure to stop and report when involved in an accident;

c) Homicide or assault arising out of the operation of a motor vehicle; d) Driving while license is suspended or revoked; or

e) Driving a motor vehicle at an excessive rate of speed and/or in a reckless manner where an injury to person or damage to property results.

b. Accidents

Points shall be assigned for each accident that occurred during the experience period, involving the insured or operator of the vehicle, who is 50% or more at fault.

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RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) (Continued)

2) One point is assigned for each auto accident that results in:

a) Total amount paid under Bodily Injury, Property Damage, Medical Payments and Collision of $2,000 or more; or

b) A loss experienced under the OTC (Comprehensive) Coverage portion of the policy in which an at fault accident that would normally be paid under Collision Coverage, but glass breakage is paid under the OTC Coverage.

3) One point is assigned if, during the experience period there were two or more accidents each of which resulted in payment but have not been assigned a point under 2) above.

4) Chargeable losses resulting from the operation of a farm truck, motor home, artisan vehicle or an antique auto are subject to the provisions of the Safe Driver Insurance Plan.

Exceptions:

1) No points are assigned for accidents incurred by an operator demonstrated to be a named insured or a principal operator of an auto insured under a separate policy in this Company. In this situation the points will be assigned to the policy on which the operator is a named insured or principal operator.

2) No points are assigned for accidents occurring under the following circumstances: a) Auto lawfully parked;

b) The applicant, owner or other resident operator involved in an accident is (1) Determined to be 50% or less negligent, or

(2) Reimbursed for 50% or more of his or her damages by, or on behalf of persons involved in the accident;

c) Auto is struck in the rear by another vehicle and the applicant or other resident operator has not been convicted of a moving traffic violation in connection with this accident;

d) Operator of the other auto involved in the accident was convicted of a moving traffic violation and the applicant or resident operator was not convicted of a moving traffic violation in connection with the accident;

e) Auto operated by the applicant or any resident operator is struck by a “hit-and-run” vehicle, if the accident is reported to the proper authority within 24 hours by the applicant or resident operator;

f) Accidents involving damage by contact with animals or fowl;

g) Accidents involving Physical Damage, limited to and caused by flying gravel, missiles, or falling objects;

h) Accidents occurring when using auto, regardless of ownership, in performance of a duty if the operator of the auto at the time of accident was a paid or volunteer peace officer, firefighter, operator of emergency vehicles, or member of any law enforcement agency. This exception does not include an accident occurring after the auto ceases to be used in performance of duty; or

i) The applicant or any current resident operator involved in an accident was not at fault. This exception does not apply if the applicant or resident operator was convicted of:

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RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) (Continued)

c. One point is assigned if, during the experience period there was one-half point assigned under convictions and one-half point assigned under accidents.

d. Refund of Surcharged Premium

If a point has been assigned for an accident and it is later determined that the accident falls under one of the exceptions in this rule, North Star shall refund to the insured the increased portion of the premium generated by the accident.

2. EXPERIENCE PERIOD

The experience period shall be the three years immediately preceding the date of application or the preparation of the renewal. However, consideration may be given for a period of not more than five years for the following:

a. An insured who has been convicted of:

1) Homicide or assault arising out of the operation of any motor vehicle; or

2) A violation of Section 11-902 or 761 of Title 47 of the Oklahoma Statutes as being impaired by or under the influence of alcohol or intoxicating liquor or who was under the influence of any substance included in the Uniform Controlled Dangerous Substances Act;

b. An offense of reckless driving as provided for in Section 11-901 of Title 47 of Oklahoma Statutes. A one month grace period may apply, which takes into consideration accidents or convictions within 30 days of dropping off.

B. DRIVING RECORD SUB-CLASSIFICATION

The driving record sub-classification shall be determined from the number of Driving Record Points accumulated during the 3-year experience period as follows:

Number of Driving Record

Driving Record Points Sub-Classification

0 0 1 1 2 2 3 3 4 or more 4

C. MULTI-CAR RISK

1. SINGLE CAR

Points attributable to each driver shall be compiled separately and the total of all drivers shall determine the surcharge for that vehicle.

2. TWO CAR RISK

The Driving Record Sub-Classification, as determined above, shall apply to each auto as shown under the Multi-Car Section in the Secondary Table.

3. THREE OR MORE CAR RISK

Any points developed under SDIP are assigned to the two cars with the highest Total Base Premiums. The remaining autos are rated at Sub-Class O.

TOTAL BASE PREMIUM is the sum of the base premium for Bodily Injury and Property Damage Liability; Medical Payments; Other Than Collision (OTC); and Collision Coverages that apply to the auto.

D. COMBINATION ACCIDENTS AND CONVICTIONS

(14)

RULE 6 - SAFE DRIVER INSURANCE PLAN (SDIP) (Continued)

E. ADMINISTRATION OF SDIP

1. NEW BUSINESS

a. Initial information necessary to assign the proper Driving Record Sub-Classification shall be obtained from an application signed personally by the applicant.

b. The signature of the applicant on all applications received from an agent shall be certified by such agent.

2. RENEWAL BUSINESS

Information necessary to assign proper renewal Driving Record Sub-Classification shall be determined from any one or combination of the following:

a. Company’s own records; b. Motor Vehicle records; or

c. An application signed by the applicant and producer.

RULE 7 - PREMIUM DETERMINATION

Bodily Injury and Property Damage Liability; Medical Payments, Other Than Collision (OTC) and Collision premiums are determined as follows:

A.

Refer to the AUTO DISCOUNT SELECTION GUIDE to determine the eligibility requirements for the “Select” rate. If additional criteria are met, the “Preferred” or “Five Star” discounts may be applicable.

B.

Refer to the Rating Factors and Statistical Codes Rule to determine the applicable Classification, Rating Factor and Statistical Code.

C.

Refer to the ISO Symbol and Identification Manual for the appropriate symbol of the auto.

When model year is used in rating and the rates for a model year are not displayed in the rate pages, use the rates shown for the latest model year.

Refer to chart shown in RULE 10 for determination of symbols on pickups, vans, farm trucks and unlisted vehicles.

D.

Refer to Territory Definitions to determine the territorial schedule code number for the location where the auto is principally garaged.

Note: When a risk is statutorily required to have, or is eligible for, a coverage that is not available in the territory of principal garaging, use the registration address to determine the territory for that coverage.

E.

Refer to Rule 9.A. to determine base rates for the desired coverage.

F.

For Stated Amount Coverage multiply the rate by the limit of liability to determine the Base Premium.

G.

The premium for each coverage is determined by multiplying the base rate by the appropriate rating factors. (See RULE 8 - PREMIUM CALCULATION STEPS)

H.

Apply the Undesirable Vehicle Surcharge if applicable. Refer to RULE 41.

(15)

RULE 8 - PREMIUM CALCULATION STEPS

After each calculation, round to the nearest whole dollar. If a particular rating item is not applicable for a particular coverage or vehicle, go to the next step.

Coverages Calculation Steps BI/PD Liability Medical Payments Uninsured Motorists Other Than Collision Collision Ext. Trans. Exp., Excess Electrical Equip. Base Rate

x Rating Tier Factor x x N/A x x N/A

x Territory Factor x x x x x N/A

x Model Year/Symbol Relativity N/A N/A N/A x x N/A

x Limit Factor x x x N/A N/A N/A

x Deductible Factor N/A N/A N/A x x N/A

x Accident Prevention Course

Discount x x N/A N/A x N/A

x Driver Class Factor

(Primary +/- Secondary) x x N/A x x N/A

x Anti-Theft Discount N/A N/A N/A x N/A N/A

x Passive Restraints N/A x N/A N/A N/A N/A

x Insurance Score Factor x x x x x x

x Companion Policy Discount x x x x x x

(16)

RULE 9 - COVERAGES - LIMITS AND DEDUCTIBLES

A. BASE RATES

Coverage Bodily Injury (25/50) Property Damage (25,000) Other Than Collision* ($100 Ded) Collision** ($250 Ded) Medical Payments (1,000) Non-Stacked Uninsured Motorist (25/50) Base Rate 139 150 386 388 32 42

*For vehicles 2003 & Prior, multiply the base OTC rate by a factor of 0.69. **For vehicles 2003 & Prior, multiply the base Collision rate by a factor of 0.70

Use ISO’s 2014 Base Model Year and Symbol Relativities to calculate physical damage premiums.

B. SPLIT LIABILITY LIMITS

B.I. Limits (000) Factor P.D. Limits Factor

25/50 1.00 25,000 1.00 50/100 1.24 50,000 1.06 100/300 1.34 100,000 1.16 300/300 1.46 **250,000 1.35 250/500 1.51 **500/500 1.69

** Do Not Bind Coverage. Refer to the Home Office for eligibility. To write maximum limits, the risk should be without any accidents or violations in the past three years. Asset protection is the primary factor in high limit consideration.

C. MEDICAL PAYMENTS

(17)

RULE 9 - COVERAGES - LIMITS AND DEDUCTIBLES (Continued)

D. UNINSURED MOTORISTS COVERAGE (Includes Underinsured Motorists Coverage)

PP 04 62

1. OWNERS

a. Non-Stacked Uninsured Motorists Coverage

This form of auto insurance will be provided on a non-stacked basis, at limits not less than Financial Responsibility limits, under every auto liability policy issued, delivered, renewed, or extended in the State of Oklahoma with respect to a motor vehicle registered or principally garaged in Oklahoma. Such offer shall be made on separate selection forms approved by the Oklahoma Insurance Commissioner. The form must be presented separately from the application.

b. Increased Limits

The named insured or applicant shall be offered the option to select increased limits up to, but not exceeding, the bodily injury liability limits in the policy. If increased limits are selected by the named insured or applicant, such selection shall apply to all motor vehicles registered or principally garaged in Oklahoma and all insureds under the policy.

c. Exceptions

(1) The named insured has the right to reject such coverage or select lower limits in writing. If this coverage is rejected by the named insured, or applicant, such rejection shall apply to all motor vehicles registered or principally garaged in Oklahoma and all insureds under the policy.

(2) The written agreement to reject this coverage or select lower limits shall remain valid for the life of the policy unless the named insured requests this coverage or higher limits in writing.

(3) The completion of a new selection form shall not be required on:

(a) Subsequent renewal, reinstatement, substitute, replacement or amended policies issued to the same named insured by the same insurer or any of its affiliates; or

(b) Any changes to an existing policy regardless of whether these changes create new coverage. d. Rates

(1) Basic Limits are 25/50. Refer to Rule 9.A. for base rates.

(2) Increased Limits – For increased limits, multiply the base rate by the appropriate factor: Limit (000) Factor 25/50 1.00 50/100 1.20 100/300 1.47 300/300 1.73 250/500 500/500 1.97 2.72

e. Rates for multi-car risks are on a per vehicle basis. Apply these rates to each vehicle, including the first vehicle.

f. The premium shall not be subject to modification under the provisions of any rating plan or other manual rule (except the Companion Policy Discount and Insurance Score).

2. NON-OWNERS

(18)

RULE 9 - COVERAGES - LIMITS AND DEDUCTIBLES (Continued)

E. PHYSICAL DAMAGE COVERAGE FOR VEHICLES TEN MODEL YEARS OLD AND

OLDER

Physical damage coverage on vehicles 10 through 14 model years of age may be written with the following minimum deductibles:

Other Than Collision (OTC) ... $100 Collision ... $250

Do not bind physical damage coverage on vehicles 15 model years old or older. Additional consideration may be secured from the Home Office on farm trucks and vehicles eligible for stated amount coverage.

A photograph is required for vehicles that are 15 model years old or older. (Vehicle age changes on October 1st of each year).

F. DEDUCTIBLE INSURANCE

1. DEDUCTIBLE LIABILITY INSURANCE

Deductible Liability Insurance is not available for vehicles classified and rated according to the rules of this manual.

2. OTHER THAN COLLISION (OTC) DEDUCTIBLE FACTORS $ ACV Deductible - Multiply the base OTC rate by 1.70. $ 50 Deductible - Multiply the base OTC rate by 1.25. $ 100 Deductible - Multiply the base OTC rate by 1.00. $ 200 Deductible - Multiply the base OTC rate by 0.92. $ 250 Deductible - Multiply the base OTC rate by 0.88. $ 500 Deductible - Multiply the base OTC rate by 0.74. $1,000 Deductible - Multiply the base OTC rate by 0.63. $1,500 Deductible - Multiply the base OTC rate by 0.53. $2,000 Deductible - Multiply the base OTC rate by 0.45. $2,500 Deductible - Multiply the base OTC rate by 0..37. 3. COLLISION DEDUCTIBLE FACTORS

(19)

RULE 10 - SYMBOL DETERMINATION FOR PICKUPS, VANS, FARM

TRUCKS AND UNLISTED VEHICLES

If the symbol for that particular vehicle is not shown in the symbol section, the physical damage premiums are based on “LIST PRICE NEW” and are assigned a symbol as follows:

(For use with 2011 and subsequent Model Year vehicles)

Symbol List Price New Symbol List Price New

01 $1 - $3,000 41 $35,001 - $36,000 02 $3,001 - $5,500 42 $36,001 - $37,000 03 $5,501 - $8,000 43 $37,001 - $38,000 04 $8,001 - $9,000 44 $38,001 - $39,000 05 $9,001 - $10,000 45 $39,001 - $40,000 06 $10,001 - $11,000 46 $40,001 - $41,250 07 $11,001 - $12,000 47 $41,251 - $42,500 08 $12,001 - $13,000 48 $42,501 - $43,750 10 $13,001 - $14,000 49 $43,751 - $45,000 11 $14,001 - $15,000 50 $45,001 - $46,250 12 $15,001 - $15,625 51 $46,251 - $47,500 13 $15,626 - $16,250 52 $47,501 - $48,750 14 $16,251 - $16,875 53 $48,751 - $50,000 15 $16,876 - $17,500 54 $50,001 - $52,500 16 $17,501 - $18,125 55 $52,501 - $55,000 17 $18,126 - $18,750 56 $55,001 - $57,500 18 $18,751 - $19,375 57 $57,501 - $60,000 19 $19,376 - $20,000 58 $60,001 - $65,000 20 $20,001 - $20,625 59 $65,001 - $70,000 21 $20,626 - $21,250 60 $70,001 - $75,000 22 $21,251 - $21,875 61 $75,001 - $80,000 23 $21,876 - $22,500 62 $80,001 - $85,000 24 $22,501 - $23,125 63 $85,001 - $90,000 25 $23,126 - $23,750 64 $90,001 - $95,000 26 $23,751 - $24,375 65 $95,001 - $100,000 27 $24,376 - $25,000 66 $100,001 - $110,000 28 $25,001 - $25,625 67 $110,001 - $120,000 29 $25,626 - $26,250 68 $120,001 - $130,000 30 $26,251 - $26,875 69 $130,001 - $140,000 31 $26,876 - $27,500 70 $140,001 - $150,000 32 $27,501 - $28,125

33 $28,126 - $28,750 71 Rating Symbol Only*

38 $32,001 - $33,000

39 $33,001 - $34,000 98 $150,001 and above**

40 $34,001 - $35,000

*Not for use in assigning price new symbols. These are Rating Symbols only. They have no corresponding price ranges and will therefore not be used as Price New Symbols. Vehicles can only be assigned these Rating Symbols via experience-based modification.

(20)

RULE 10 - SYMBOL DETERMINATION FOR PICKUPS, VANS, FARM

TRUCKS AND UNLISTED VEHICLES (Continued)

(For use with 1989 (For use with 1990

& Prior Model thru 2010 Model

Year vehicles) Year vehicles)

LIST PRICE NEW SYMBOL LIST PRICE NEW SYMBOL

$ 0- 2,100 1, 2 $ 0- 6,500 1 2,101- 2,750 3 6,501- 8,000 2 2,751- 3,700 4 8,001- 9,000 3 3,701- 5,000 5 9,001-10,000 4 5,001- 6,500 6 10,001-11,250 5 6,501- 8,000 7 11,251-12,500 6 8,001-10,000 8 12,501-13,750 7 10,001-12,500 10 13,751-15,000 8 12,501-15,000 11 15,001-16,250 10 15,001-17,500 12 16,251-17,500 11 17,501-20,000 13 17,501-18,750 12 20,001-24,000 14 18,751-20,000 13 24,001-28,000 15 20,001-22,000 14 28,001-33,000 16 22,001-24,000 15 33,001-39,000 17 24,001-26,000 16 39,001-46,000 18 26,001-28,000 17 46,001-55,000 19 28,001-30,000 18 55,001-65,000 20 30,001-33,000 19 65,001- Above 21 33,001-36,000 20 36,001-40,000 21 40,001-45,000 22 45,001-50,000 23 50,001-60,000 24 60,001-70,000 25 70,001-80,000 26 80,001-Above 27

(21)

RULE 11 - DETERMINING PHYSICAL DAMAGE RATES FOR SYMBOLS NOT

DISPLAYED ON STATE RATE PAGES

A.

2011 And Later Model Years – Symbol 98 Vehicles Develop the Base Rates for Symbol 98 vehicles as follows: 1. Other Than Collision

a. Increase the factor for Symbol 70 by +0.74 for each $10,000 or fraction of $10,000 above $150,000 of Original Cost; and

b. Apply this factor to the Symbol 11 rate for the applicable model year. 2. Collision

b. Apply this factor to the Symbol 11 rate for the applicable model year.

B.

1990-2010 Model Years – Symbol 27 Vehicles

Develop the Base Rates for Symbol 27 vehicles as follows: 1. Other Than Collision

b. Apply this factor to the Symbol 8 rate for the applicable model year. 2. Collision

(22)

RULE 12 - EXCESS ELECTRONIC EQUIPMENT COVERAGE AND TAPES,

RECORDS, DISKS AND OTHER MEDIA COVERAGE

PP 03 13

(COVERAGE CODE 014)

A. COVERAGE

The policy includes $1,000 coverage for electronic equipment that reproduces, receives or transmits audio, visual or data signals which is permanently installed in the vehicle at the time of loss. Such equipment includes, but is not limited to:

1. Radios and Stereos; 2. Tape Decks;

3. Compact Disk Systems; 4. Navigation Systems; 5. Internet Access Systems; 6. Personal Computers;

7. Video Entertainment Systems; 8. Telephones;

9. Televisions;

10. Two-way Mobile Radios; 11. Scanners; or

12. Citizens Band Radios.

This sublimit may be increased to any one of the limits shown below and is subject to the Other Than Collision Deductible.

Coverage is not available for radar detectors.

B. RATING

Develop the premium independently for each covered auto as follows: 1. Excess Electronic Equipment Coverage.

a. Determine the maximum limit of liability for excess electronic equipment permanently installed in that auto. Do not include the cost of tapes, records, disks or other media in determining this limit.

Additional coverage for $200 worth of tapes, records, disks and other media applies at no additional charge when coverage is provided for increased limits for excess electronic equipment.

b. Select the premium from the table below:

Maximum Limit of Liability For Semi-Annual Premium Excess Electronic Equipment Per Auto

$1,500 $ 45 2,000 60 2,500 75 3,000 90 3,500 105 4,000 120 4,500 135 5,000 150

For limits in excess of $5,000, Refer to Company. 2. Tapes, Records, Disks and Other Media Only.

When coverage is not purchased for increased limits for excess electronic equipment, coverage for $200 worth of tapes, records, disks and other media is available for an additional premium charge of $8 per auto, per 6 month term. Attach the excess electronic equipment coverage endorsement to the policy.

C. ENDORSMENT

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RULE 13 - NAMED NON-OWNER COVERAGE

PP 03 22

A. NAMED NON-OWNER

Named Non-Owner Coverage may be used for an individual who does not own an auto but drives borrowed or rented autos. This coverage is usually applied to a temporary replacement auto.

Coverage may also be extended to the spouse and resident relatives of that named individual. Named Non-Owner Coverage should not be used on new business.

B. INELIGIBLE

1. Persons driving other than private passenger type vehicles. 2. Operators and Employees of garages, parking lots, etc.

C. RATING

1. LIABILITY AND MEDICAL PAYMENTS

Charge the following percentage of the applicable premiums that would apply if the named individual owned an auto, using the premium determination procedures set forth in Rule 7. Premium Determination. a. Exclusions for vehicles furnished or available for regular use apply:

Person(s) Named Percentage Charge

Named Individual 40%

Named Individual and Resident Relatives 60%

(including Named Individual's Spouse)

b. Exclusions for vehicles furnished or available for regular use do NOT apply:

(including Named Individual's Spouse) 2. UNINSURED MOTORISTS COVERAGE

Charge the Non-Stacked Uninsured Motorists Coverage rate that would apply if such individual owned an auto – Refer to Rule 9.A. for base rate and Rule 9.D. for increased limit factors.

D. ENDORSEMENT

(24)

RULE 14 - EXTENDED NON-OWNED COVERAGE (BORROWED OR RENTED

AUTOS

PP 03 06

A. ELIGIBILITY

The Extended Non-Owned Coverage endorsement may be used for an individual who owns an auto but also drives borrowed or rented autos.

Coverage may also be extended to the spouse and resident of that named individual.

B. INELIGIBLE

1. Persons driving other than private passenger vehicles. 2. Operators and employees of garages, parking lots, etc.

C. COVERAGE

The Personal Auto Policy (PAP) may be extended to cover Vehicles Furnished Or Available For Regular Use Except As Public Or Livery Conveyances.

Under the liability coverage section of the PAP, coverage is not provided for non-owned vehicles furnished or available for regular use. By choosing liability coverage under the Extended Non-Owned Coverage - Vehicles Furnished or Available for Regular Use endorsement, liability coverage provided under the basic PAP may be extended to cover vehicles furnished or available for regular use except vehicles furnished for use as public or livery conveyances.

D. RATING

Charge the following percentage of the applicable premiums that would apply as if the insured owned the auto being covered, using the premium determination procedures set forth in Rule 7. Premium Determination. 1. Primary Liability Insurance in Effect

(including Named Individual's Spouse) 2. No Primary Liability Insurance is in Effect

(including Named Individual's Spouse)

E. ENDORSEMENT

(25)

RULE 15 - EMPLOYERS NONOWNERSHIP LIABILITY

NSG-PA01

A.

A policy may be written, without a specific description of the motor vehicles, to cover a named insured for the use in the business of the named insured of any private passenger auto which is being used by any employee of the named insured where the use of such vehicle is only occasional and not frequent. Such autos may not be owned in whole or in part, or hired or leased by, or loaned to, or registered in the name of the named insured.

B. RATING

1. Determine the estimated total number of employees of the named insured.

2. Determine the semi-annual advance premium from the table below based on the estimated total number of employees.

Total Number Bodily Injury Property Damage of Employees Limits 25/50 (000) Limit $25,000

1- 5 $12 $4

6-10 22 8

3. Increased Limits - Refer to the Increased Limits Factor Table.

4. Unless there is a great fluctuation in exposure during the policy period, the advance premium determined at the beginning of the policy term shall be the earned premium.

RULE 16 - OPTIONAL LIMITS TRANSPORTATION EXPENSES COVERAGE

(RENTAL EXPENSE COVERAGE)

PP 03 02

The included $20/$600 limit for Transportation Expenses Coverage may be increased to $30/$900, or $40/$1,200.

A. ELIGIBILITY

Only policies providing Other Than Collision (OTC) Coverage may be provided Increased Limits Transportation Expenses Coverage. This coverage is not available for Artisan vehicles or trailers.

B. RATING

The rates for this coverage are not subject to classification rating or modification by any rating plan.

Semi-Annual Rate

Coverage Per Auto

$30/$900 Increased Limits Transportation Expenses Coverage (Coverage Code 706) ... $13 $40/$1,200 Increased Limits Transportation Expenses Coverage (Coverage Code 706) ... $22 Attach the Optional Limits Transportation Expenses Coverage endorsement to the policy.

RULE 17 – ROADSIDE ASSISTANCE

CF-2016

A.

This endorsement provides limited coverage for: 1. Emergency Road Service consisting of:

a. Mechanical First Aid (service; not parts); b. Tire Service;

c. Battery Service; and

d. Delivery Service (gasoline, oil or water. Does not include product costs).

Note that emergency road service is limited to one service per every 72 hours and no more than a total of five services during a 12-month consecutive period.

(26)

RULE 17 – ROADSIDE ASSISTANCE (Continued)

4. Trip Interruption – up to $300.

Coverage applies only to those vehicles as designated in the declarations. Coverage for Emergency Road Service, Towing Service and Locksmith Service is subject to a combined per disablement occurrence limit of $150 for cars, pickups, vans and SUV’s and $300 for recreational trailers and motor homes. Utility trailers are automatically covered if being towed by a vehicle covered by Roadside Assistance.

B.

This coverage may be written for Private Passenger Autos, Recreational Trailers and Motor Homes that are less than 30 model years old. Exceptions may be given for vehicles 30 or more model years old if we are already providing this coverage on one or more eligible vehicles. This coverage may not be applied to classic cars, antique cars, farm trucks or semis.

C. RATING

Vehicle Type Semi-Annual Rate Per Vehicle

Cars/Pickups/Vans/SUV’s $10

Recreational Trailers/Motor Homes $20

No discounts are applicable to the Roadside Assistance Rate

RULE 18 - ANTIQUE AUTOS

PP 03 23

An antique auto is a motor vehicle of the private passenger type which is 25 or more years old and is maintained primarily for use in exhibitions, club activities, parades and other functions of public interest, and occasionally used for other purposes. The vehicle must have antique or historic license plates.

A. LIABILITY

Charge 40% of Private Passenger “All Other Class/Pleasure Use” base rates. The premiums are subject to the following minimum premiums:

$10 - Bodily Injury $ 5 - Property Damage

B. MEDICAL PAYMENTS, UNINSURED MOTORISTS

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RULE 18 - ANTIQUE AUTOS (Continued)

C. PHYSICAL DAMAGE (Stated Amount)

The physical damage is written on a stated amount basis. The company’s limit of loss will be the lesser of the: 1. Stated amount shown in the schedule or in the declarations;

2. Actual Cash Value of the stolen or damaged property; or 3. Amount necessary to repair or replace the property.

Antique autos owned by an individual may be written when our company provides the insurance for the person’s other eligible private passenger vehicles. Coverage is provided by issuing a separate Personal Auto Policy or by endorsement.

Attach the coverage for damage to your auto (stated amount maximum limit of liability) endorsement. Semi-Annual

Coverage Deductible Rate Per $100

Other Than Collision (OTC) $ 100 $0.53

250 0.38 500 0.33 1,000 0.27 1,500 0.23 2,000 0.20 2,500 0.18 Collision $ 250 $0.56 500 0.41 1,000 0.33 1,500 0.29 2,000 0.26 2,500 0.24 Notes:

1. Do not bind coverage on a vehicle with a value over $25,000 - Refer to the Home Office. 2. The vehicle must be insured to 100% of its full value.

3. Attach 2 color photographs of the vehicle taken from opposite diagonal corners of the vehicle.

(28)

RULE 19 - CLASSIC AUTOS

PP 03 08

A classic auto is a motor vehicle of the private passenger type which is 10 or more years old and may be used on a regular basis. Its value is significantly higher than the average value of other autos of the same make and model year.

A. LIABILITY, MEDICAL PAYMENTS, UNINSURED MOTORISTS

Classify and rate as a private passenger auto.

B. PHYSICAL DAMAGE (Stated Amount)

1. Determine the stated amount of coverage applicable to the vehicle.

2. Based on the stated amount of the vehicle, assign a symbol using the “(For use with 2011 and subsequent Model Year vehicles)” table found in RULE 10.

3. Classify and rate as a private passenger auto using the base rate for the current model year.

The physical damage is written on a stated amount basis. The company’s limit of loss will be the lesser of the: 1. Stated amount shown in the schedule or in the declarations;

2. Actual Cash Value of the stolen or damaged property; or 3. Amount necessary to repair or replace the property. Notes:

1. Do not bind coverage on a vehicle with a value over $25,000 - Refer to the Home Office. 2. Attach 2 color photographs of the vehicle taken from opposite diagonal corners of the vehicle.

RULE 20 - ELECTRIC AUTOS

An electric auto is a motor vehicle of the private passenger type that is run by electric power and it is not used for commercial purposes.

A. LIABILITY

Charge 75% of the applicable private passenger base rate.

B. MEDICAL PAYMENTS, UNINSURED MOTORISTS

Charge private passenger base rates or premiums.

C. PHYSICAL DAMAGE

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RULE 21 - CUSTOMIZING EQUIPMENT COVERAGE

PP 03 18

Other Than Collision (OTC) and Collision coverage for customizing equipment may be purchased on a stated amount basis in excess of $1,000 for any pickup, van or other vehicle insured (except farm trucks or semis) for physical damage coverage. Refer to the Customizing Equipment Coverage (stated amount insurance) endorsement for extent of coverage.

A.

This endorsement provides coverage for direct and accidental loss to custom furnishings or equipment including, but not limited to:

1. Special carpeting and insulation, furniture or bars; 2. Facilities for cooking and sleeping;

3. Height - extending roofs;

4. Custom murals, paintings, or other decals or graphics; 5. Wheelchair lifts and handicap accessibility customizations. The endorsement exclusions apply.

B.

The cost of customizing equipment should not be considered when determining the symbol of the vehicle.

C.

The customizing charge determined in this rule is the only charge for customized equipment on a vehicle.

D.

The charge for customizing is made only when the Customizing Equipment Coverage (stated amount insurance) endorsement is attached.

E.

Do not bind coverage on vehicles with total values over $35,000 - Refer to the Home Office.

F. RATING

1. To determine the stated amount rate per $100 of customizing, use the following rating formula: Base Rate for Other Than Collision or Collision

x Rating Tier Factor (Dollar Round) x Territory Factor (Dollar Round)

x Model Year and Symbol Relativity Factor for current model year, Symbol 3 (Dollar Round) x Deductible Factor (Dollar Round)

x Applicable rate factor below (No Dollar Round. This Is The Stated Amount Rate Per $100) Other Than Collision (OTC) - For all model years ... 0.017

Collision - For all model years ... 0.010

2. Multiply the result of Paragraph 1. by the total desired limit of coverage. (Dollar Round) The amount of insurance must be at least 100% of the value of the customization.

3. Multiply the result of Paragraph 2. by the Driver Class Factor (Primary +/- Secondary). (Dollar Round) 4. Multiply the result of Paragraph 3. by the Insurance Score Factor. (Dollar Round)

5. Multiply the result of Paragraph 4. by the Companion Policy Discount Factor. (Dollar Round) NOTES:

1. The Customizing Equipment Coverage (stated amount insurance) endorsement shall be attached.

2. If Other Than Collision (OTC) or Collision coverage for customizing is purchased, the vehicle must have the corresponding OTC or Collision coverage.

3. The customizing deductibles shall be the same as the vehicle deductibles.

4. If a loss occurs simultaneously to the vehicle insured, which is customized, and the customized equipment, only one deductible is applicable.